The US Economy Proves Incredibly Resilient

It can certainly be claimed that the US economy has been resilient. Unemployment is at historic low levels (3.70% in May), and inflation (4.00% in May) is getting under control even though it is still not at pre-pandemic levels. Moreover, based on the most recent labor market data, vacancies are up and job growth is immense. At the same time, though, unemployment is slightly up from its April level of 3.40% while wage growth is slowing. All these imply that there is evidence to suggest the economy is running too hot to justify rate hikes.